Does this DeFi token’s 70% rally have fundamental legs?

The crypto market was seen reviving from the weekend’s catastrophe on Monday. Almost all top coins were trading in green at press time after noting 5%-10% pumps each on the daily timeframe. However, there was one DeFi-centric token that managed to garner people’s attention owing to its massive double-digit pump.

#92nd ranked Synthetix [SNX] managed to glide up the charts by over 70% in just a day. Exactly at this time on Sunday, per CMC’s data, SNX was valued around $1.8. However, by Monday, it had already surpassed the $3 threshold.

Post a slight retracement, the said DeFi token was trading around $2.8 at press time.

It’s a fundamental pump for Synthetix!

The Synthetix protocol has been faring quite well of late, and as a result, its revenue has been shooting up. Per data from Token Terminal, Synthetix used to earn a scanty revenue of around $100k per day at the beginning of the month. However, post noting a gradual rise over the past few days, the number registered a value of $1 million on 19 June. The same, as illustrated below, is at a multi-month high.

The protocol revenue usually rises when DeFi users are ready to fork out more fees. Per data from cryptofee, that has indeed been the case. In fact, Synthetix stood third on the fee list, right after Uniswap and Ethereum.

Alongside, the DeFi protocol’s trading volumes have also noted a gradual incline over the past few days. Per data from Dune Analytics, it has been clocking in $100 million on a daily basis. On Sunday, it went on to clinch a new high of close to $400 million. 

Thus, keeping the afore-highlighted datasets in mind, it can be assumed that Synthetix is merely not riding the broader market’s relief rally wave, but has fundamental legs of its own.